The best binary option trading platform is a tough question.
I can’t in good conscience recommend any. But some platforms are outright scams… Consider this article harm reduction.
Binary options trading is already very risky. That’s why you don’t need the extra hassle of dealing with a bad binary option trading platform.
The problem here is that a LOT of binary option trading platforms are scummy. I don’t trade binaries myself, but — as in every kind of trading — who you trust with your money is important.
Table of Contents
- 1 What Is Binary Options Trading?
- 2 How Risky Is Binary Trading?
- 3 Our Criteria for Selecting Options Trading Platforms
- 4 Our Top 10 Picks
- 4.1 1. Pocket Option — The Beginners’ Binary Options Trading Platform
- 4.2 2. ExpertOption — The Non-Western Binary Options Trading Platform
- 4.3 3. Nadex — The U.S. Binary Options Trading Platform
- 4.4 4. Olymp Trade — The Low Minimum Deposit Binary Options Trading Platform
- 4.5 5. Binary.com — The Veteran Binary Options Trading Platform
- 4.6 6. RaceOption — The U.K. Binary Options Trading Platform
- 4.7 7. Binomo — The IFC-Certified Binary Options Trading Platform
- 4.8 8. Quotex — The Web-Based Binary Options Trading Platform
- 4.9 9. Spectre.ai — The Blockchain-Based Binary Options Trading Platform
- 4.10 10. World Forex — The Forex-First Binary Options Trading Platform
- 5 Key Takeaways
What Is Binary Options Trading?
Binary options trading is a trading method where you predict an option’s “moneyness” — the intrinsic value of the option. These options are called binary because you only have two answers and two outcomes.
Trading binary options is a guessing game. You guess whether an option will meet or exceed its strike price when it hits the expiration time. If you’re right, you make money. If you’re wrong, you lose the initial investment.
How are binary options different from stock options? Stock options still have an underlying asset. The binary options market trades on pure predictions without assets involved. If you think the asset price will meet its strike price, you buy the option. If you don’t think it’ll meet the strike price, you sell the option.
People often call binary options a type of gambling because you win or lose everything. Either you’ll get the maximum payout or get nothing, with few in-betweens. This is also why binary options are also called all-or-nothing options.
Just like regular options, the binary market covers different assets. Some examples include:
- Foreign currency pairs
- Stock indices
- Economic events
Learn more by reading my guide about the basics of binary options trading.
How Risky Is Binary Trading?
Binary trading is very risky because it’s all or nothing.
Sure, you can get a big return on investment if you’re right. But you’ll lose everything if you’re wrong. That’s one of the main reasons why people compare binary options trading to gambling.
It’s also why binary options traders can’t follow Rule #1: cut losses quickly.
But the extreme difference between wins and losses isn’t the only risk about binary options. Binary options are relatively new, and there aren’t a lot of regulated brokers out there. This means scams are more likely for binary options than other trading vehicles.
Some unsavory binary options companies even engage in trade manipulation. They bait traders with attractive return rates to scam them out of their money. Many of these brokers operate overseas, so you can’t sue them.
I’m not saying every binary options platform is a scam. I’m saying that you should be very careful when choosing a binary options broker.
Our Criteria for Selecting Options Trading Platforms
There are dozens of binary options trading platforms available. But not all of them are trustworthy. Some of them are bad, and some others are outright scammers. That’s why you need to select your broker carefully.
I apply the same rule of thumb for all my trading platforms. A good trading platform doesn’t hinder me from making trades.
I want reliable trade executions. I also want great customer service that can help me when problems arise.
What other factors do I consider when choosing binary options trading platforms? Here they are:
Years in Business
Experience is important in any business — especially the brokers behind binary options platforms. Brokers with many years under their belt are usually more trustworthy. Why? Because if they scam customers, they won’t be around for long.
Likewise for the platform itself. They’ve had more time to tweak their platforms and get them into the best shape they can be.
Most importantly, they’ve had more time to be reviewed. Reading reviews will give you a good feel for whether the broker and platform is right for you.
Here’s the harsh truth about binary options brokers: many binary options brokers don’t have licenses. Even if they do, they might not be licensed to operate in your country. Unregulated financial institutions will face fewer consequences for screwing around with your money.
Always check a binary options broker’s license before choosing. For binary brokers in the United States, you can check for a license from one of these regulatory bodies:
- Commodity Futures Trading Commission (CFTC)
- Securities and Exchange Commission (SEC)
Most binary brokers are located outside of America. They usually operate from countries like Hong Kong, Saint Vincent, and the Seychelles. If you’re eyeing an offshore broker, make sure its host country’s regulatory body licenses it.
You can trade binary options representing different assets. Just like other trading vehicles, having a wide selection of assets is usually a good sign. Choose the binary option platform with the asset type you’re most likely to trade.
Like to trade multiple asset types? You don’t have to be tied to a single platform. You can start accounts on multiple brokers.
Minimum Deposit Requirements and Trading Amounts
Most binary options platforms have a minimum deposit. Minimum deposits can range from a few bucks to several thousand.
Don’t want to risk too much to just try out binary options trading? Find a platform with low minimum deposits.
Some brokers also impose minimum trade sizes, which might impact your strategy. If you’re just dabbling, I suggest finding brokers with low minimum trade sizes.
Deposit and Withdrawal Methods
Trustworthy binary options brokers should provide transparency regarding payment methods. They typically let you deposit and withdraw money through various means. This includes credit or debit cards, cryptocurrencies, and wire transfers.
Withdrawal speeds also matter. Some of the best brokers let you receive the money within hours or minutes of the withdrawal request. Others may take a few days to send your money.
Demo Accounts and Virtual Trading
It’s good practice to paper trade with any strategy you don’t have experience with — especially one as notoriously hard to profit from as binary options. Virtual trading allows you to use virtual money to try making binary options trades.
Another perk of demo accounts is that you can use them to try the platform’s features without committing money. If you don’t like how the trading tools work, you can simply walk away and try another platform.
Mobile and Desktop Availability
Everybody has different preferred trading devices. I like trading on my laptop — desktop apps usually have more features. But some people prefer mobile trading apps because they’re often out and about.
Whatever your preferences, choose the broker that best fits your needs.
Our Top 10 Picks
My top binary options trading platform picks are:
- Pocket Option — The Beginners’ Binary Options Trading Platform
- Expert Option — The Non-Western Binary Options Trading Platform
- Nadex — The U.S. Binary Options Trading Platform
- Olymp Trade — The Low Minimum Deposit Binary Options Trading Platform
- Binary.com — The Veteran Binary Options Trading Platform
- RaceOption — The U.K. Binary Options Trading Platform
- Binomo — The IFC-Certified Binary Options Trading Platform
- Quotex — The Web-Based Binary Options Trading Platform
- Spectre.ai — The Blockchain-Based Binary Options Trading Platform
- World Forex — The Forex-First Binary Options Trading Platform
There are dozens of binary options trading platforms out there. Not all of them are reputable, and not all of them are good.
To help you out, here are some of my recommended picks.
Many don’t accept American and Canadian traders, along with having other restrictions. This is because the better regulated countries are more strict about binary options, because so many people lose money by trading them.
Looking for options trading brokers? Check out my guide to the best option trading platforms.
1. Pocket Option — The Beginners’ Binary Options Trading Platform
Pocket Option is a beginner-friendly binary options trading platform. You can start trading on Pocket Option with just a $5 initial deposit.
It also has a $1 transaction floor, meaning you can start by making very small trades.
Why We Like It
Pocket Option offers a demo account, so you can try out binary options trading before committing real money. Pocket Option also has instant withdrawals, allowing you to cash out your gains as soon as you make them.
2. ExpertOption — The Non-Western Binary Options Trading Platform
ExpertOption boasts over 70 million trading accounts. It’s highly popular thanks to its low initial deposit. Plus, it offers different account types that cater to different traders.
Why We Like It
ExpertOption has zero transaction fees and excellent customer service. It also accepts multiple ways to pay. That means you can use credit cards, wire transfers, and various online services.
The only drawback of ExpertOption is that it doesn’t accept American, Canadian, Australian, Israeli, and European binary options traders.
3. Nadex — The U.S. Binary Options Trading Platform
Nadex is a binary options exchange based in the United States and regulated by the CFTC. It offers one of the most legit and trustworthy options platforms on this list.
Nadex also has a free virtual trading account so you can try its interface.
Why We Like It
Nadex has almost-nonexistent trading fees at just $1 per transaction. This offsets its relatively high $250 initial deposit. It also offers many kinds of assets like stock indexes, forex pairs, and commodities.
4. Olymp Trade — The Low Minimum Deposit Binary Options Trading Platform
Cyprus-based Olymp Trade has one of the lowest barriers to entry in the binary options game. Beginner traders only need a $10 original deposit, and you can trade as low as $1 per transaction.
Why We Like It
Olymp Trade has a user-friendly trading platform compatible with desktop and mobile devices. It also offers webinars and training materials to familiarize customers with binary trading.
One thing to know about Olymp Trade is that it primarily takes customers from Asia. It doesn’t have the necessary approvals to take on North American and European customers.
5. Binary.com — The Veteran Binary Options Trading Platform
Binary.com is one of the oldest binary trading platforms available. Founded in 1999, it already has regulatory approval in multiple countries.
Why We Like It
Binary.com offers fast trade executions. This means your orders will be completed within seconds. It also has over 100 types of options spanning various commodities and indexes.
But you should know that Binary.com isn’t available for American and Canadian traders.
6. RaceOption — The U.K. Binary Options Trading Platform
RaceOption is a United Kingdom-based online trading platform with mobile and desktop capabilities. It boasts fast withdrawal and 24/7 customer support to address your issues.
Why We Like It
RaceOption lets you make an account within minutes. It also has regular contests and prize draws that might earn you extra money.
7. Binomo — The IFC-Certified Binary Options Trading Platform
Binomo is a relatively trustworthy Internet-based trading platform. It’s a member of the International Financial Commission (IFC). The IFC ensures Binomo’s transparency and may step in to resolve disputes if necessary.
Why We Like It
Binomo has a demo trading account where you can spend up to $1,000 in virtual funds to test the platform. It also has VIP customer accounts for binary traders who deposit more than $1,000. VIP users get extra assets, fast withdrawals, and a personal success manager.
8. Quotex — The Web-Based Binary Options Trading Platform
Quotex is a fully web-based binary options trading platform based in the Seychelles. It’s a member of the International Financial Market Relations Regulation Center (IFMRRC).
Something worth noting: the IFMRRC isn’t an official regulatory body. It’s a third-party dispute resolution organization. But that’s still better than no regulation at all.
Why We Like It
Quotex is fully web-based, meaning you don’t have to download any extra apps. It offers diverse expiry times, so you can buy binary options that expire within minutes or ones that expire in a month.
9. Spectre.ai — The Blockchain-Based Binary Options Trading Platform
Spectre.ai is a blockchain-based binary options platform. Here, your trades are handled by the blockchain and not an intermediary. In theory, this increases liquidity and eliminates fraud.
Why We Like It
Spectre.ai’s blockchain structure means instant trade execution. Fortunately, deposits and withdrawals aren’t crypto-exclusive.
When it first started, you needed ETH to deposit and withdraw funds from Spectre.ai. Now, you can also use U.S. dollars.
10. World Forex — The Forex-First Binary Options Trading Platform
World Forex lets you start with a $1 minimum deposit. It also provides 24/7 customer support for new user assistance.
Why We Like It
World Forex offers a good range of options contract durations. You can buy contracts with expiration dates spanning from one minute to one week.
This Internet-based trading platform also has a virtual trading account so you can test its interface. This way, you know what you’re getting into.
Binary options are a bit like the Wild West. They’re notorious for their lack of regulations and the prevalence of scams. Choosing the right broker is important because you want one that won’t get in your way or trick you out of your money.
Binary options trading is risky, but it can be profitable. Here’s how you can boost your odds of getting a good return on investment:
- Study hard and learn from successful traders.
- Limit your level of risk.
- Record every trade.
- Review past trades and learn from them.
You can’t really get an edge in binary options trading, which is the big reason I’d advise you to stay away. Even professional traders with years of trading experience have difficulties with binary options.
While it’s not gambling, it’s close to it. Luck is one of the biggest deciding factors, which is the opposite of what trading should be.
If you’re interested in options trading, there are strategy-based trading styles out there. If you don’t know where to start, check out my former student Mark Croock’s Evolved Trader mentorship program.
Mark has earned $4 million mostly from trading options. He adapted my penny stock strategies to options, to great effect.
Are you going to follow my advice and stay away from binaries, or are set on trading them? Let me know in the comments!